E.16: Business Organization Quiz

Which form of business organization is owned and operated by one individual?

• Partnership

• Sole Proprietorship

• Limited Liability Company

• Corporation

In which form of business organization do partners have unlimited liability for the debts and obligations?

• Limited Liability Company

• Corporation

• Partnership

• Sole Proprietorship

Profits and losses are passed through to the partners' personal tax returns in which form of business organization?

• Partnership

• Corporation

• Limited Liability Company

• Sole Proprietorship

Who typically shares decision-making authority in a partnership?

• The owner

• The board of directors

• The shareholders

• The partners

Which form of business organization involves shareholders who elect a board of directors to oversee the management?

• Corporation

• Limited Liability Company

• Partnership

• Sole Proprietorship

In which form of business organization do shareholders have limited liability?

• Corporation

• Sole Proprietorship

• Limited Liability Company

• Partnership

Where are profits taxed at the corporate level and dividends taxed again when distributed to shareholders?

• Corporation

• Limited Liability Company

• Sole Proprietorship

• Partnership

Who makes major decisions for the corporation in a corporate form of business organization?

• The partners

• The shareholders

• The board of directors

• The owner

Which form of business organization is relatively easy and inexpensive to start?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

Which form of business organization involves more paperwork and formalities compared to sole proprietorships and partnerships?

• Limited Liability Company

• Corporation

• Partnership

• Sole Proprietorship